News published in INFORMA 2018

News published in INFORMA in September

If a worker has applied to his/her earnings from economic activities the reduction established in Article 18.2 for income described, in accordance with the regulations, as income earned at irregular times in any of the five previous tax periods, the reduction of 30 percent specified in this Article may be applied for earnings from work, generated during a period of above two years that is received in a later fiscal year.

If a professional has de-registered his/her business and later restarted the business activity, even if over one year has passed since the de-registration, the normal withholding rate will be applied on yield from professional activities and not the reduced rate established for the start of an economic activity, as this is not the beginning of an activity but rather the re-initiation of a previously operating activity.

The withholding rate for professionals is that established in Article 95 of the Personal Income Tax Regulations, without providing for the application of a higher rate. Thus, professionals preparing invoices to be issued for services rendered, cannot apply a withholding rate higher than that established.

Taxpayers who carry out economic activities that are eligible for the deduction established for income earned in Ceuta or Melilla will calculate the amount of the payment by instalments to be made, reducing the percentages established in Article 110.11 of the Personal Income Tax Act by 60 per cent in payments in instalments corresponding to income generated after 5 July 2018. For payment in instalments corresponding to income generated until 4 July 2018, these percentages will be reduced by half.